Conseco To Give More Info To Auditors

By Jim Connolly

March 02, 2009 at 07:00 PM

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Conseco Inc. will delay releasing its annual report in order to gather information the company must supply to avoid receiving a negative report from its auditors about its ability to continue as an ongoing concern, the company says.

Conseco, Carmel, Ind., says it will file its Form 10-K annual report with the U.S. Securities and Exchange Commission on or before March 17.

Conseco needs the additional time to finalize the analysis and disclosure related to its investment portfolio, the company says.

The independent auditor has asked Conseco for more information regarding the company's liquidity and debt covenant margins, particularly those affected by investment portfolio losses, Conseco says.

If Conseco does not provide the information, the audit opinion will include an additional paragraph raising concern about Conseco's ability to continue as an ongoing entity, Conseco says.

Unless lenders granted a waiver, the inclusion of such a paragraph would be a default under Conseco's senior credit facility, Conseco says.

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